Industrial Dispute in India: Definition, Causes and Measures to Improve Industrial Relations

According to Sec. 2 of the Industrial Dispute Act, 1947, Industrial dispute means any dispute or difference
between employers and employers or between employers and workmen or between workmen and
workmen, which is connected with the employment or non-employment or the terms of employment or
with the conditions of labour of any person Industrial disputes are of symptoms of industrial unrest in the
same way that boils are symptoms of a disordered body.

Whenever an industrial dispute occurs, both management and workers try to pressurize each other. The
management may resort to lock-out and the workers may resort to strike, gherao, picketing, etc.

Strike:

Strike is a very powerful weapon used by a trade union to get its demands accepted. It means quitting
work by a group of workers for the purpose of bringing pressure on their employer to accept their
demands. According to Industrial Disputes Act, 1947, Strike means a cessation of work by a body of
persons employed in any industry acting in combination, or a concerted refusal or a refusal under a
common understanding of any number of persons who are or have been so employed, to continue to
work or to accept employment.

There are many types of strikes. A few of them are discussed below:

(i) Economic Strike:

Under this type of strike, members of the trade union stop work to enforce their economic demands such
as wages, bonus, and other conditions of work.

(ii) Sympathetic Strike:

The members of a union collectively stop work to support or express their sympathy with the members of
other unions who are on strike in the other undertakings.

(iii) General Strike:

It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of
all the workers in a particular region of industry to force demands common to all the workers. It may also
be an extension of the sympathetic strike to express general protest by the workers.

(iv) Sit Down Strike:

When workers do not leave their place of work, but stop work, they are said to be on sit down or stay in
strike. It is also known as tools down or pen down strike. The workers remain at their work-place and also
keep their control over the work facilities.

(v) Slow Down Strike:

Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of
output in an organised manner. They adopt go- slow tactics to put pressure on the employers.

Lock-out:
Lock-out is declared by the employers to put pressure on their workers. It is an act on the part of the
employers to close down the place of work until the workers agree to resume the work on the terms and
conditions specified by the employers.

The Industrial Disputes Act, 1947 has defined lock-out as closing of a place of employment or the
suspension of work or the refusal by an employer to continue to employ any number of persons employed
by him. Lock-outs are declared to curb the activities of militant workers. Generally, lock-out is declared 25
a trial of strength between the management and its employees.

Gherao:

It is a Hindi word which means to surround. The term Gherao denotes a collective action initiated by a
group of workers under which members of the management of an industrial establishment are prohibited
from leaving the business or residential premises by the workers who block their exit through human
barricade.

A human barricade is created in the form of a ring or a circle at the centre of which the persons concerned
virtually remain prisoners of the persons who resort to gherao. Gheraos are quite common in India these
days. Gheraos are resorted to not only in industrial organisations, but also in educational and other
institutions. The persons who are gheraoed are not allowed to more nor do any work.

Gheraos have been criticised legally and morally. Legally gheraos amount to imposing wrongful restraints
on the freedom of some persons to move. That is why, courts have held it as an illegal action. Gheraos
tend to inflict physical duress on the persons affected. They also create law and order problem. Morally, to
gherao a person to press him to agree to certain demands is unjustified because it amounts to getting
consent under duress and pressure. A person who is gheraoed is subjected to humiliation.

Moreover, a person who has made a promise under gherao is justified in going back over the word after
that. In short, as pointed out by a National Commission on Labour, gherao cannot be treated as a form of
industrial protest because it involves physical coercion rather than economic pressure.

Picketing:

When workers are dissuaded from reporting for work by stationing certain men at the factory gates, such
a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. It is basically a
method of drawing the attention of public towards the fact there is a dispute between the management
and the workers.

Causes of Industrial Disputes:

We can classify the causes of industrial disputes into two broad groups:

(i) Economic causes, and

(ii) Non-economic causes.

Economic causes include:

(i) Wages,

(ii) Bonus,
(iii) Dearness allowance,

(iv) Conditions of work and employment,

(v) Working hours,

(vi) Leave and holidays with pay, and

(vii) Unjust dismissals or retrenchments.

Non-economic causes include:

(i) Recognition of trade unions,

(ii) Victimisation of workers,

(iii) Ill-treatment by supervisory staff,

(iv) Sympathetic strikes,

(v) Political causes, etc.

The percentage distribution of disputes by causes from 1973 onwards has been shown in Exhibit
2 reveals the following causes of industrial disputes:

1. Wages and Allowances:

Since the cost of living has generally showed an increasing trend, the workers have been fighting for
higher wages to meet the rising cost of living and to increase their standard of living. 34.1% of the
industrial disputes in 1973 were due to demand for higher wages and allowances. This percentage was
36.1% in 1974. During 1985, 22.5% of the disputes were due to wages and allowances. Wages and
allowances accounted for 25.7% of disputes in 1986, 26.6% in 1992, 25.0% in 1996 and 20.2% in 2000.

2. Personnel and Retrenchment:

Personnel and retrenchment causes have also been important. During 1973, 24.3% of the industrial
disputes were because of dismissals, retrenchment, etc. as compared to 29.3% in 1961. In 1979,
personnel and retrenchment topped the list of causes of industrial disputes with 29.9%. The number of
disputes because of personnel and retrenchment was 32.0% in 1971, 23.1% in 1985 and 19.8% in 1996.
In 2000, about 12.1% of the disputes occurred due to dismissals, layoffs, retrenchments, etc.

3. Bonus:

Bonus has been an important factor in the industrial disputes, 10.3% of the industrial disputes in 1973
were because of bonus as compared to 6.9% in 1961. 13.8% and 15.2% of the disputes were due to
bonus during 1976 and 1977 respectively. It is worth noting that during 1982 only 4.7% of the disputes
were due to bonus as compared to 7.3% in 1985. This percentage was 4.2 in 1992, 3.6 in 1996 and 8.5 in
2000.

4. Indiscipline and Violence:

The number of disputes because of indiscipline and violence among the workers has been significant.
During 1987, 15.7% of the disputes were because of indiscipline and violence as compared to only 5.7%
in 1973. During 1985, 16.1% of industrial disputes were caused by indiscipline and violence and during
1996, about 21.6% of the industrial disputes arose due to indiscipline and violence in industrial
undertaking. This shows that indiscipline and violence have continued to be a serious problem in industry
during the past two decades.

5. Leave and Hours of Work:

Leave and hours of work have not been so important causes of industrial disputes. During 1973, 1.5% of
the causes were because of leave and hours of work. Their percentage share in the industrial disputes
was 2.2% in 1977, 1.8% in 1985, 2.2% in 1996 and 0.9% in 2000.

6. Miscellaneous Causes:

Miscellaneous causes include modernisation of plant and introduction of computers and automatic
machinery recognition of union political factors, etc. These factors have caused a significant number of
industrial disputes in the country, 24.1% of the industrial disputes in 1973 were due to miscellaneous
causes. They accounted for 19.5% of the industrial disputes in 1977, 29.2% in 1985, 27.8% in 1996 and
33.2% in 2000.

Miscellaneous causes of industrial disputes are as follows:

(a) Workers resistance to rationalisation, introduction of new machinery and change of place of factory.

(b) Non-recognition of trade union.

(c) Rumours spread out by undesirable elements.

(d) Working conditions and working methods.

(e) Lack of proper communication.

(f) Behaviour of supervisors.

(g) Trade union rivalry etc.

Thus, industrial disputes do not arise only when workers are dissatisfied on economic grounds, they also
arise over issues which are of non-economic nature. Instances may be quoted when strikes where
successfully organised to protest against the managements decision to change the location of the plant
from one state to another. Similarly, even causes like behaviour of supervisor and trade union rivalries
may give rise to industrial disputes.

The whole concept of industrial relations revolves around the principle of friction dynamics which is the
key to the establishment of harmonious relations between labour and management. We cannot think of
any society completely obliviant of some sort of friction between labour and management.

Measures to Improve Industrial Relations:

The following measures should be taken to achieve good industrial relations:
1. Progressive Management:

There should be progressive outlook of the management of each industrial enterprise. It should be
conscious of its obligations and responsibilities to the owners of the business, the employees, the
consumers and the nation. The management must recognise the rights of workers to organise unions to
protect their economic and social interests.

The management should follow a proactive approach, i.e., it should anticipate problems and take timely
steps to minimise these problems. Challenges must be anticipated before they arise otherwise reactive
actions will compound them and cause more discontent among the workers.

2. Strong and Stable Union:

A strong and stable union in each industrial enterprise is essential for good industrial relations. The
employers can easily ignore a weak union on the plea that it hardly represents the workers. The
agreement with such a union will hardly be honoured by a large section of workforce. Therefore, there
must be a strong and stable union in every enterprise to represent the majority of workers and negotiate
with the management about the terms and conditions of service.

3.Atmosphere of Mutual Trust:

Both management and labour should help in the development of an atmosphere of mutual cooperation,
confidence, and respect. Management should adopt a progressive outlook, and should recognise the right
of workers.

Similarly, labour unions should persuade their members to work for the common objectives of the
organisation. Both the management and the unions should have faith in collective bargaining and other
peaceful methods of settling industrial disputes.

4. Mutual Accommodation:

The right of collective bargaining of the trade unions must be recognised by the employers. Collective
bargaining is the cornerstone of industrial relations. In any organisation, there must be a great emphasis
on mutual accommodation rather than conflict or uncompromising attitude. Conflicting attitude does not
lead to amicable labour relations; it may foster union militancy as the union reacts by engaging in
pressure tactics. The approach must be of mutual give and take rather the take or leave.

5. Sincere Implementation of Agreements:

The management should sincerely implement the settlements reached with the trade unions. The
agreement between the management and the unions should be enforced both in letter and spirit.

6. Workers Participation in Management:

The participation of workers in the management of the industrial unit should be encouraged by making
effective use of works committees, joint consultation and other methods. This will improve communication
between managers and workers, increase productivity and lead to greater effectiveness.
7. Sound Personnel Policies:

Personnel policies should be formulated in consultation with the workers and their representatives if they
are to be implemented effectively. The policies should be clearly stated so that there is no confusion in the
mind of anybody. The implementation of the policies should be uniform throughout the organisation to
ensure fair treatment to each worker.

8. Governments Role:

The Government should play an active role for promoting industrial peace. It should make law for the
compulsory recognition of a representative union in each industrial unit. It should intervene to settle
disputes if the management and the workers are unable to settle their disputes. This will restore industrial
peace.

Law: What do the terms arbitration, conciliation, and mediation mean?

Of these three, arbitration is the only one with a relatively fixed legal definition. Arbitration is the submission by
the parties to a dispute to the authority of an extrajudicial tribunal which will then render a decision on the dispute
supposedly the advantage to this is that it's faster and less expensive than going to court. Arbitrators also are
empowered to disregard technicalities of the law and might issue compromise awards in cases where the traditional
legal process might yield all or nothing. One advantage of arbitration in international disputes is that neither party
is required to navigate a foreign court system. If an agreement to arbitrate is valid, the arbitrators' decision
becomes a contractual obligation and is not reviewable for legal error and the like.

Procedures labelled as "conciliation" and "mediation" vary. We use conciliation and mediation in preliminary
custody proceedings in our county. Both are court-supervised processes (they don't have to be) but the main
difference is that the conciliator meets with the parties each in turn without the presence of the other and then
brings them together to discuss the issues that they've identified as the most important. It's a little bit like an oral
version of pleading. In our local court, the conciliator is also empowered to decide, on a temporary basis, disputes
of fact. Thus she can "lean" on the parties to reach an agreement as a neutral third party. The mediator's job is to get
the parties to talk to each other in the hopes of addressing their own issues without the suggestion of outside
resolution. In mediation, the parties are brought together, sometimes without counsel, at the outset. Unlike
arbitration, conciliation and mediation don't result in binding decisions (although if it's a court conciliation a
temporary order might be made for convenience).

Management consults the Joint Management Council for:

1. Administration and amendment of standing orders if needed.

2. Retrenchment.

3. Rationalization.

4. Closure, reduction or cessation of operations .

The Joint Management Council exchanges information on:

1. General economic situation of the undertaking.

2. State of the market, productions and sales.

3. Organization and general position of the undertaking.

4. Circumstances affecting the economic position of the undertaking.

 5. Manufacturing methods and techniques.

6. Annual balance sheet, profit and loss statement, and related documents.

7. Long-term development and expansion plans.

8. Other related matters.

The Joint Management Council also acts as an administration:

1. Administers welfare measures.

2. Supervision of safety measures.

3. Operation of vocational and apprenticeship schemes.

4. Prepare work schedules and vacation timings.

5. Reward employees for their valuable input.

6. Other related matters.

Miscellaneous:
All other matters related to wages, bonus, employment, promotion, grievances, etc. and matters related to
collective bargaining are not under the power of the Joint Management Council.

Industrial Relations (IR): Concept, Scope and

Objectives
Concept of IR:
Basically, IR sprouts out of employment relation. Hence, it is broader in meaning and wider in scope. IR is
dynamic and developing socio-economic process. As such, there are as many as definitions of IR as the
authors on the subject. Some important definitions of IR are produced here.

According to Dale Yoder, IR is a designation of a whole field of relationship that exists because of the
necessary collaboration of men and women in the employment processes of Industry.

Armstrong has defined IR as IR is concerned with the systems and procedures used by unions and
employers to determine the reward for effort and other conditions of employment, to protect the interests
of the employed and their employers and to regulate the ways in which employers treat their employees

In the opinion of V. B. Singh Industrial relations are an integral aspect of social relations arising out of
employer-employee interaction in modern industries which are regulated by the State in varying degrees,
in conjunction with organised social forces and influenced by the existing institutions. This involves a
study of the State, the legal system, and the workers and employers organizations at the institutional
level; and of the patterns of industrial organisation (including management), capital structure (including
technology), compensation of the labour force, and a study of market forces all at the economic level.
Encyclopedia Britannica defined IR more elaborately as The concept of industrial relations has been
extended to denote the relations of the state with employers, workers, and other organisations. The
subject, therefore, includes individual relations and joint consultation between employers and workers at
their places of work, collective relations between employers and trade unions; and the part played by the
State in regulating these relations.

Thus, IR can now safely be defined as a coin having two faces: co- operation and conflict. This
relationship undergoes change from thesis to antithesis and then to synthesis. Thus, the relationship
starting with co-operation soon changes into conflict and after its resolution again changes into co -
operation. This changing process becomes a continuous feature in industrial system and makes IR
concept as dynamic and evolving one.

Scope of IR:
Based on above definitions of IR, the scope of IR can easily been delineated as follows:

1. Labour relations, i.e., relations between labour union and management.

2. Employer-employee relations i.e. relations between management and employees.

3. The role of various parties viz., employers, employees, and state in maintaining industrial relations.

4. The mechanism of handling conflicts between employers and employees, in case conflicts arise.

The main aspects of industrial relations can be identified as follows:

1. Promotion and development of healthy labour management relations.

2. Maintenance of industrial peace and avoidance of industrial strife.

3. Development and growth of industrial democracy.

Objectives of IR:
The primary objective of industrial relations is to maintain and develop good and healthy relations
between employees and employers or operatives and management. The same is sub- divided into other
objectives.

Thus, the objectives of IR are designed to:

1. Establish and foster sound relationship between workers and management by safeguarding their
interests.

2. Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties.

3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of
workers.

4. Provide an opportunity to the workers to participate in management and decision making process.

5. Raise productivity in the organisation to curb the employee turnover and absenteeism.
6. Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of
relationship between workers and management.

7. Establish and nurse industrial democracy based on labour partnership in the sharing of profits and of
managerial decisions.

8. Socialise industrial activity by involving the government participation as an employer.

According to Krikaldy, industrial relations in a country are influenced, to a large extent, by the form of the
political government it has. Therefore, the objectives of industrial relations are likely to change with
change in the political government across the countries.

Accordingly, Kirkaldy has identified four objectives of industrial relations as listed below:

1. Improvement of economic conditions of workers.

2. State control over industrial undertakings with a view to regulating production and promoting
harmonious industrial relations.

3. Socialisation and rationalisation of industries by making the state itself a major employer.

4. Vesting of a proprietary interest of the workers in the industries in which they are employed.

Grievance Procedures
A grievance is basically a complaint. In a workplace a grievance generally occurs as a result of treatment which is perceived
to be unfair or harsh at the hands of a work colleague. Typical situations which might result in a grievance include:
Being passed over for promotion
Being given unpopular tasks more often than other workers (picked on)
Sexual harassment
Favouritism in the sharing of overtime work hours
Employers need to implement measures to allow any such problems to be resolved effectively and fairly. One such measure
is to implement 'grievance procedures', the purpose of which is to make it easier for employees to come forward if they feel
they are a victim of unfair treatment.

If employees have difficulty dealing with significant workplace issues then the likely result is a reduction in workplace
morale, increased staff turnover or even the risk of the employee taking legal action.

Grievance procedures will commonly contain:

1 A recommendation that the first action the aggrieved party take is to attempt to resolve the problem by talking
directly with the person causing perceived to be perpetrating unfair or harsh treatment.

2 If any such attempt to find a resolution is unsuccessful, the method by which to bring the matter to the attention
of appropriate authorities.

3 The amount of time which the complainant has to commence the grievance.

4 The process by which the grievance will be investigated, including the length of time within which matter must be
actioned.

5 The confidentiality that must be observed

6 Guidance on mediation strategies

7 The process for appointing persons to arbitrate on the matter

Grievance Procedures
Grievance means any type of dissatisfaction or discontentments arising out of factors related to an employees job which he
thinks are unfair. A grievance arises when an employee feels that something has happened or is happening to him which he
thinks is unfair, unjust or inequitable. In an organization, a grievance may arise due to several factors such as:

1. Violation of managements responsibility such as poor working conditions

 2. Violation of companys rules and regulations

3. Violation of labor laws

4. Violation of natural rules of justice such as unfair treatment in promotion, etc.

Various sources of grievance may be categorized under three heads: (i) management policies, (ii) working conditions, and (iii)
personal factors

1.Grievance resulting from management policies include:

Wage rates

Leave policy

Overtime

Lack of career planning

Role conflicts

Lack of regard for collective agreement

Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:

Poor safety and bad physical conditions

Unavailability of tools and proper machinery

Negative approach to discipline

Unrealistic targets
Grievance resulting from inter-personal factors include

Poor relationships with team members

Autocratic leadership style of superiors

Poor relations with seniors

Conflicts with peers and colleagues

It is necessary to distinguish a complaint from grievance. A complaint is an indication of employee dissatisfaction that has not
been submitted in written. On the other hand, a grievance is a complaint that has been put in writing and made formal.

Grievances are symptoms of conflicts in industry. Therefore, management should be concerned with both complaints and
grievances, because both may be important indicators of potential problems within the workforce. Without a grievance
procedure, management may be unable to respond to employee concerns since managers are unaware of them. Therefore, a
formal grievance procedure is a valuable communication tool for the organization.

[USA] Most common causes of annoyance in the workplace >>

The most common causes of annoyance in the workplace are co-workers with poor time management skills (cited by 43 per
cent of respondents) and the prevalence of gossip (36 per cent) according to an online survey of over 1000 employed U.S.
adults conducted by Ipsos Public Affairs-Randstad. Read More....

Grievance Procedure

Grievance procedure is a Step by step process an employee must follow to get his or her complaint addressed satisfactorily. In this process,
the formal (written) complaint moves from one level of authority (of the firm and the union) to the next higher level.

Grievance procedure is a formal communication between an employee and the management designed for the settlement of a
grievance. The grievance procedures differ from organization to organization.
Open door policy
Step-ladder policy
Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his
grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management
executives are usually busy with other concerned matters of the company. Moreover, it is believed that open door policy is
suitable for executives; operational employees may feel shy to go to top management.

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance
redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate
supervisor. If the employee is not satisfied with superiors decision, then he discusses his grievance with the departmental
head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the
committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to
redress the grievance, then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both
the parties.

GRIEVANCE PROCEDURE IN INDIAN INDUSTRY

The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established grievance procedure for the country which
would be acceptable to unions as well as to management. In the 16th session of Indian Labor Conference, a model for grievance procedure
was drawn up. This model helps in creation of grievance machinery. According to it, workers representatives are to be elected for a
department or their union is to nominate them. Management has to specify the persons in each department who are to be approached first
and the departmental heads who are supposed to be approached in the second step. The Model Grievance Procedure specifies the details
of all the steps that are to be followed while redressing grievances. These steps are:

STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a representative of management. He has to
give his answer within 48 hours.

STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee can take his grievance to head of the
department, who has to give his decision within 3 days.

STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can take the grievance to Grievance
Committee. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report. The final decision of
the management on the report of Grievance Committee must be communicated to the aggrieved employee within three days of the receipt of
report. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. The management must communicate its
decision to the worker within 7 days.

STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary arbitration.
Grievance Handling: Definition, Features
Causes, and Effects
Introduction and Definition of Grievance:

A grievance is any dissatisfaction or feeling of injustice having connection with ones employment situation
which is brought to the attention of management. Speaking broadly, a grievance is any dissatisfac tion that
adversely affects organizational relations and productivity. To understand what a grievance is, it is
necessary to distinguish between dissatisfaction, complaint, and grievance.

1. Dissatisfaction is anything that disturbs an employee, whether or not the unrest is expressed in words.

2. Complaint is a spoken or written dissatisfaction brought to the attention of the supervisor or the shop
steward.

3. Grievance is a complaint that has been formally presented to a management representative or to a

union official.

According to Michael Jucious, grievance is any discontent or dissatisfaction whether expressed or not,
whether valid or not, arising out of anything connected with the company which an employee thinks,
believes or even feels to be unfair, unjust or inequitable.

In short, grievance is a state of dissatisfaction, expressed or unexpressed, written or unwritten, justified or

unjustified, having connection with employment situation.

Features of Grievance:

1. A grievance refers to any form of discontent or dissatisfaction with any aspect of the organization.

2. The dissatisfaction must arise out of employment and not due to personal or family problems.

3. The discontent can arise out of real or imaginary reasons. When employees feel that injustice has been
done to them, they have a grievance. The reason for such a feeling may be valid or invalid, legitimate or
irrational, justifiable or ridiculous.

4. The discontent may be voiced or unvoiced, but it must find expression in some form. However,
discontent per se is not a grievance. Initially, the employee may complain orally or in writing. If this is not
looked into promptly, the employee feels a sense of lack of justice. Now, the discontent grows and takes
the shape of a grievance.

5. Broadly speaking, thus, a grievance is traceable to be perceived as non-fulfillment of ones expec-

tations from the organization.

Causes of Grievances:

Grievances may occur due to a number of reasons:

1. Economic:
Employees may demand for individual wage adjustments. They may feel that they are paid less when
compared to others. For example, late bonus, payments, adjustments to overtime pay, perceived
inequalities in treatment, claims for equal pay, and appeals against performance- related pay awards.

2. Work environment:

It may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or poor
physical conditions of workplace, defective tools and equipment, poor quality of material, unfair rules, and
lack of recognition.

3. Supervision:

It may be objections to the general methods of supervision related to the attitudes of the supervisor
towards the employee such as perceived notions of bias, favouritism, nepotism, caste affiliations and
regional feelings.

4. Organizational change:

Any change in the organizational policies can result in grievances. For example, the implementation of
revised company policies or new working practices.

5. Employee relations:

Employees are unable to adjust with their colleagues, suffer from feelings of neglect and victimization and
become an object of ridicule and humiliation, or other inter- employee disputes.

6. Miscellaneous:

These may be issues relating to certain violations in respect of promotions, safety methods, transfer,
disciplinary rules, fines, granting leaves, medical facilities, etc.

Effects of Grievance:

Grievances, if not identified and redressed, may adversely affect workers, managers, and the organiza -
tion.

The effects are the following:

1. On the production:

a. Low quality of production

b. Low productivity

c. Increase in the wastage of material, spoilage/leakage of machinery

d. Increase in the cost of production per unit

2. On the employees:

a. Increase in the rate of absenteeism and turnover

b. Reduction in the level of commitment, sincerity and punctuality

c. Increase in the incidence of accidents

d. Reduction in the level of employee morale.

3. On the managers:

a. Strained superior-subordinate relations.

b. Increase in the degree of supervision and control.

c. Increase in indiscipline cases

d. Increase in unrest and thereby machinery to maintain industrial peace

Need for a Formal Procedure to Handle Grievances:

A grievance handling system serves as an outlet for employee frustrations, discontents, and gripes like a
pressure release value on a steam boiler. Employees do not have to keep their frustrations bottled up until
eventually discontent causes explosion.

The existence of an effective grievance procedure reduces the need of arbitrary action by supervisors
because supervisors know that the employees are able to protect such behavior and make protests to be
heard by higher management. The very fact that employees have a right to be heard and are actually
heard helps to improve morale. In view of all these, every organization should have a clear-cut proce dure
for grievance handling.

7 Tips for Preventing a Worker Strike

Strikes are expensive and exhausting. As manufacturing margins grow thinner and competition becomes more intense, organizations
both at home and abroad have an increasing interest in preventing work stoppages. Formal, internal policies to prevent strikes and
mediate disputes are becoming a staple of global manufacturers.
Last month, Hyundai workers began a partial strike in South Korea, which observers estimate will cost the automaker $39 million in
lost output, or the equivalent of 2,106 vehicles. The walkout, a repeat of last years work stoppage, also affected Hyundai affiliate Kia,
dropping the stock price of both companies. It is the 22nd strike in 26 years for the automaker.
In the U.S., there were 19 major strikes and lockouts last year, according to the U.S. Bureau of Labor Statistics. Those work
stoppages idled 148,000 workers for a total of 1.13 million days. There have been seven similar strikes in the U.S. through July of this
year. The financial losses were measured in the billions.
So how do companies prevent strikes? Smart organizations follow a set of best practices designed to keep workers content so the
threat of a walk-out never arises.
1. Tone down the oligarchy. United Auto Workers president Bob King told IMT that its in a company's best interest to discard the
traditional rigid demarcation between management and labor. This is an old model that can lead to resentment and leave employees
feeling they have no say in management decisions. Better business process management technology and organizational structures
can go a long way toward removing these barriers.
Today, layers of management can be eliminated because workers are more dedicated to managing their own processes, said King.
2. Empathy. Consider that the qualities that make great executives -- an aggressive, tenacious personality that will not
negotiate or yield -- are unlikely to create resolutions in labor disputes. A sense that management simply doesnt care often
causes labor unions to take a similar stance, which leads to stalemates. Organizations that apply empathy and a fine touch
to prevent strikes will likely be more successful. This is where trained mediators can serve an organization well. 3.
Attitude. Approaching a potential strike as more of a problem to be solved than a battle to be won will help companies begin
the negotiations in the right frame of mind. Wayne Ranick, director of communications for the United Steel Workers (USW)
International, told IMT that workers want to be respected for the contributions they make to the companys overall success.
What they dont want is to be considered a bottom-line cost when they are the ones making the product for the
marketplace. Its an arrogant attitude on the part of company management that stirs resentment. 4. Worker
autonomy. Technology can do much to ensure that work continues at expected quality and quantity levels without
micromanagement. As King noted, workers prefer to feel they are in more control of their day-to-day jobs. Workers can take
the initiative to excel for reasons of personal accomplishment rather than a fear of punishment. Employees dont work for
money only. They also work for what iconic psychologist Abraham Maslow called self-actualization, and helping them
achieve it can go a long way toward boosting employee satisfaction. 5. Employee education. Its common, going into labor
disputes, for employees to believe that they are getting a significantly worse deal than their peers in similar industries. If
this is not the case -- if a companys pay and benefits package is competitive within the industry -- its important to
communicate this honestly to employees. 6. Appearances. Perks like executive dining rooms, giant offices, and luxurious
company cars are considered old-fashioned excesses and are often a source of worker resentment. There are regular
reports of Silicon Valley CEOs working out of cubicles to be closer to employees. Sergio Marchionne, the current chairman
and CEO of Chrysler and credited with turning the company around, keeps a modest office in the engineering department of
the companys Auburn Hills, Mich., headquarters. The lavish penthouse office suite once occupied by Lee Iacocca remains
vacant. 7. Employee safety. Workers who see their employers are doing everything possible to keep them safe and healthy
feel more valued than workers who see evidence that they are on the losing side of a cost-benefit analysis. If there is a need
to cut costs, this is never the place to do it. "There must be an ongoing process that monitors safety conditions and a
response program in place when something is discovered that can cause an injury, illness or death, Ranick told IMT.
The most effective approach to preventing strikes is to ensure that workers feel like they have a voice in the workplace. If
there is a problem, they want to be heard and know there is a process in place to resolve it. One of the best long-term
strategies for strike prevention, however, is remembering that it cant be crunch time all the time.
Companies never hesitate to ask for concessions when times are tough, said Ranick. They need to remember to share
the spoils when times are good.

COLLECTIVE BARGAINING
Collective bargaining is the negotiation process that takes place between an
employer and a group of employees when certain issues arise. The employees rely
on a union member to represent them during the bargaining process, and the
negotiations often relate to regulating such issues as working conditions,
employee safety, training, wages, and layoffs. When an agreement is reached, the
resulting collective bargaining agreement, or CBA, becomes
the contract governing employment issues. To explore this concept, consider the
following collective bargaining definition. What is Collective
Bargaining
The National Labor Relations Act, or NLRA, was established in 1935. The Act set the
standards for U.S. labor laws, which guarantee employees certain basic rights, such as the
right to organize into trade unions, and the ability to engage in collective bargaining
negotiations. The Act requires officials elected to head a union to meet with the employer to
negotiate conditions. Specific rules in support of collective bargaining include:

There is a limit of one representative for each unit of employees

All representatives must promote the practice, and follow all procedures, of
collective bargaining
Employers must bargain with the employees representatives
Employees and their representatives have the right to discuss wage issues

Not all employers and employees are covered under the act. For example, independent
contractors and government workers are excluded from the NLRA. However, the Act does
stipulate that these workers cannot be prevented from joining labor unions if they wish to do
so.

Unfair Labor Practices

Part of the National Labor Relations Acts responsibilities includes ensuring employers do not
engage in unfair labor practices. Under the Act, employers are obligated to follow certain
laws, and are prohibited from certain actions, including:

Interfering with, coercing, or restraining employees right to form, join, or assist in

the formation of labor organizations
Dominating or interfering with the formation of any labor union organization
Discrimination in hiring or tenure of employees in order to discourage participation
in union organization
Discriminating against any employee who files charges or testifies against the
employer
Refusing to bargain with the employees representative

The National Labor Relations Board

The National Labor Relations Board (NLRB) was formed in 1935 to oversee compliance
with the National Labor Relations Act. This federal agency is charged with managing legal
disputes between employees and an employer. The agency is also responsible for taking
action against employers in violation of the NLRA.

Good Faith Bargaining

Both employees and employers are required to partake in good faith bargaining. While this
term may involve many issues, it typically includes (1) refusal of either party to meet and
attempt to bargain with the other party, (2) engaging in sham or misleading negotiations,
and (3) making changes to the terms of an existing CBA without consulting the other party.
The NLRB helps ensure all employers and employee representatives adhere to these
conditions as, when principles of good faith bargaining are not adhered to, the negotiation
process between employer and employees may be more difficult.

Mandatory Bargaining Issues

Employers do not have to engage in good faith bargaining over every issue that arises as
some may be considered trivial and are not covered under the labor laws. There are some
issues, however, that are considered mandatory bargaining issues for which employers must
participate in collective bargaining, including wages, layoff procedures, and hours. When an
employee group desires changes to be made in an issue subject to collective bargaining, it
must give advanced notice to the employer. If the employer refuses to meet in collective
bargaining over the issue, it may be charged with unfair labor practices, and the NLRB may
step in. This often results in an investigation by the NLRB, and potentially in a labor strike.
Collective Bargaining Process
The collective bargaining process involves five core steps:

1. Preparation Choosing a negotiation team and representatives of both the union

and employer. Both parties should be skilled in negotiation and labor laws, and both
examine available information to determine whether they have a strong standing for
negotiation.
2. Discussion Both parties meet to set ground rules for the collective bargaining
negotiation process.
3. Proposal Both representatives make opening statements, outlining options and
possible solutions to the issue at hand.
4. Bargaining Following proposals, the parties discuss potential compromises,
bargaining to create an agreement that is acceptable to both parties. This becomes a
draft agreement, which is not legally binding, but a stepping stone to coming to a
final collective bargaining agreement.
5. Final Agreement Once an agreement is made between the parties, it must be
put in writing, signed by the parties, and put into effect.

Continuous Bargaining

Continuous bargaining is a method of collective bargaining in which ongoing negotiations

between the employer and the union representative take place. This may occur when the
employer and union representative have a good working relationship that enables them to
continually make small changes to ensure positive employment policies.

Concession Bargaining

Concession bargaining is a method of collective bargaining that sometimes takes place when
the employer is in distress. In this situation, the union may give the employer back a
previous agreement in exchange for job security for the largest number of employees. For
example, a union may give up paid time off in exchange for protection for layoffs.

Benefits of Collective Bargaining

According to studies, employees covered by collective bargaining often have better working
conditions, higher wages, and better benefit packages than employees who are not
members of a labor union. For example, union workers are more than 18 percent more likely
to have affordable health insurance, and 22 percent more likely to have pension coverage.
Wage advantages offered by collective bargaining mostly benefit earners of middle and
lower wages, reducing wage gaps. Membership in labor unions and collective bargaining also
benefits employees by decreasing the wage gap that exists between male and female
employees.

Collective Bargaining in Education

Collective bargaining in education consists of a process in which faculty and the board of
trustees at a school interact and negotiate terms of employment. The collective bargaining
process in education, similar to other forms of collective bargaining, results in legally binding
agreements that cannot be changed by only one side. If changes are needed, both parties
must participate in negotiations to reach a new agreement.

Some reasons educational employees are encouraged to engage in the collective bargaining
process include:

1. It creates a feeling of shared control over employment issues and the decision
making process.
2. Clearly defined employment policies reduce uncertainty.
3. A fair and effective grievance procedure increases faculty confidence that problem
issues will be handled in a fair and timely manner.
4. A negotiated agreement that addresses faculty concerns provides a sense of
security.
5. The policy of collective bargaining puts pressure on both sides to act in good faith
in regard to employment practices.

Employer Duty to Supply Information

While the employer has an obligation to supply pertinent information to the union during the
collective bargaining process, only certain information is required to be supplied. For
example, if an employer claims it cannot grant a wage increase request due to financial
problems, the union has the right to request documents supporting the employers claims.
The employer must also provide the employees current salary rates and benefit information
upon request.

Union Duty of Fair Representation

When an employee is a member of a union, the union has a duty to provide fair
representation to the employee. While the union is not required to act on every request that
an employee makes, it must treat each and every request fairly regardless of the employees
race, age, sex, or education. If an employee feels that the union has breached its duty of fair
representation, he may follow certain procedures to file a grievance. If there are no
grievance procedures available, the employee may hire an attorney to help ensure his rights
are protected. Because employment law can be complex, an attorney experienced with
employment issues is best suited in this situation.

When a Deal is Not Reached

When a collective bargaining dispute cannot be resolved through ordinary means, the issue
falls into the hands of the NLRB. The board investigates the claims over which a deal was not
reached, and looks at information from both sides in determining whether future
proceedings are necessary. The NLRB may make a decision siding with either party, as long
as fair labor laws are not violated.

Paying for Representation

In many states, employee union members are required to pay for a portion of the cost of
representation during the collective bargaining process. Employees may also be required to
pay monthly dues, which may be equal to 1% or 2% of their pay. In some jurisdictions, the
dues may not be used for representation during collective bargaining, while in other
jurisdictions the dues are specifically for such representation.

International Collective Bargaining

Collective bargaining is an international human right recognized in Article 23 of the Universal
Declaration of Human Rights. The right to international collective bargaining is promoted
through international labor standards, and though not all countries recognize the National
Labor Relations Act or National Labor Relations Board, many countries have their own
associations or agencies that oversee labor rights.

Related Legal Terms and Issues

Coercing persuading or forcing a person to do something through the use of
manipulation or threats.
Dues the cost of membership when a person joins a union or club. Dues many be
required weekly, or annually.
Grievance a formal complaint filed by an employee or agent. Some employers or
agencies have specific procedures that must be followed.
Independent Contractor a person who agrees to do work for someone else
using his own methods.
Layoff a permanent or temporary discharge of employees.
Strike the act of employees organizing and protesting employment practices in
an attempt to induce changes.
Union an organized group of employees that is formed to protect workers from
unfair labor practices.